Emami to invest Rs 950 cr in its edible oil business

MUMBAI: With a view to emerge as a leading manufacturer and garner substantial marketshare in the branded edible oil segment, the Emami Group has earmarked Rs 950 crore over the next two years for the purpose, even as it is looking at a national roll-out of its Healthy & Tasty oil brand, a top company official said.

The investments will be done through the Group's wholly-owned subsidiary, Emami Biotech, the official said.

"We are looking at investing around Rs 950 crore in Emami Biotech, the arm that looks after our edible oil business. The funds will be raised through a combination of internal accruals, equity and debt. Thirty per cent will be raised from equity," Emami's Director, Aditya Vardhan Agarwal, told PTI here.

The funds will be used to expand existing units as well as set up green-field projects, Agarwal said.

Set up in 2006 to manufacture bio-diesel from Jatropha, Emami Biotech, is, however, presently focusing on edible oils as it is facing some regulatory issues in bio-fuel.

The company currently produces 1,600 tonnes per day (tpd) of edible oils such as palm, soya, mustard, blended and sunflower. It plans to expand its capacity to 3,000 tpd over the next two years, Agarwal said.